Q. A multi concept restaurant incorporates two or more restaurants, typically chains, under one roof. Sharing facilities reduces costs of both real estate and labour. Multi concept restaurants typically offer a limited menu, compared with full-sized, stand-alone restaurants. For example, KMAC operates a combination Kentucky Fried Chicken (KFC)/Taco Bell restaurant. food preparation areas are separate, while orders are taken at shared point-of-sale (POS) stations. If Taco Bell and KFC share facilities, y reduce fixed costs by 30%; however, sales in joint facilities are 20% lower than sales in two separate facilities.

What do these numbers imply for decision of when to open a shared facility versus two separate facilities?